EUR/USD consolidates around 55-day SMA

As expected, EUR/USD surged past the 55-day moving average line to close the week just below the 1.10 mark. During Friday, the pair has been contained by 200-day SMA at 1.1032, which remains a very formidable resistance for the bulls. Monday-Tuesday development is likely to be cautious, as we are nearing the Fed rate decision on Wednesday. Our short term outlook is neutral for the next 24 hours, while the weekly PP at 1.0943 is acting as an important demand.

During the weekend the total percentage of bullish positions has remained broadly steady at 45%, providing a total gap of 10% with respect to the bears (55%). Alongside, pending orders in both narrow and wide ranges are swinging around the 50% mark.